If the market is rational, ETFs should trade at a discount to nav to account for the risk of hacks, incompetence and hostile governments.

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And the potential that they don’t actually have any coins?

We still only have 1 ETF that's proven they own their addresses πŸ’€ still so early

Exactly

Perhaps.

Although it is possible others would pay a premium to defer responsibility.

But don't we all carry that risk? I've had a few boating accidents myself.